Delhi High Court
Customs Department's Baggage Rules Have 'Limited Application' On Foreign Tourists: Delhi HC Orders Release Of Russian National's Gold Chain
The Delhi High Court has held that the Baggage Rules 2016 which are framed under the Customs Act 1962 to ensure that every passenger entering India passes through a Customs check has limited application on foreign tourists coming to India.While holding so, a division bench of Justices Prathiba M. Singh and Dharmesh Sharma ordered the release of a Russian national's gold chain, valued at about Rs. 7 lakhs, which was confiscated by the Customs Department when he arrived in India.It observed, “It...
Can't Presume Pending Investigation For Disqualification Under 'Sabka Vishwas Scheme' When Proof Of Service Of Notice Not Available: Delhi HC
The Delhi High Court recently granted relief to a trader whose application for availing the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 over service tax dues was declined by the GST Department “without providing any reason”.A division bench of Justices Prathiba M. Singh and Dharmesh Sharma observed that in the absence of proof of service of notice upon the trader, prior to his making an application for dispute resolution, it cannot be presumed that any investigation was pending...
DTAA | Subsidiary Of A Company Does Not Ipso Facto Constitute Its Permanent Establishment: Delhi High Court
The Delhi High Court has held that a subsidiary or an entity which is substantially controlled by another entity in a contracting State does not by itself become a Permanent Establishment (PE) of that other entity.Citing Article 5 of the India-Finland Double Taxation Treaty, a division bench of Justices Yashwant Varma and Ravinder Dudeja observed,“There is no general presumption in law that a subsidiary can never be acknowledged to be a PE. This since Article 5(8) itself merely states that the...
CBDT Cannot Impose Limitations To Extinguish Rights Granted Under Income Tax Act: Delhi High Court
Recently, the Delhi High Court held that Central Board of Direct Taxes (CBDT) cannot impose limitations to extinguish rights granted under Income Tax Act, 1961. The Court held that the wide powers granted to the CBDT are not for extinguishing a right that is conferred by the Act. Accordingly, the Court Circular No. 07/2007 dated 23 October 2007 issued by the CBDT to the be ultra vires the Income Tax Act.Circular No. 07/2007 dated 23 October 2007 issued by the Central Board of Direct Taxes...
Man Accused Of Taking ₹2 Crore Dowry Seeks Income Tax Dept Probe Into Wife's Family, Delhi High Court Rejects Plea
The Delhi High Court has rejected the writ petition filed by a man, seeking an inquiry into the finances of his wife and her family who claimed to have paid him ₹2 crores dowry, in addition to spending crores of rupees on their wedding.A division bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela observed that the complaint stemmed from a matrimonial feud and the man was unable to indicate the provision under which such a complaint was made to the Income Tax...
MSMED Act Will Prevail Over Arbitration Act In Disputes Pertaining To A Party Which Is An MSME: Delhi High Court
The Delhi High Court Bench of Justice Manoj Kumar Ohri has reiterated that the Arbitration and Conciliation Act, 1996 is a general law governing the field of arbitration whereas the MSMED Act, 2006 governing a very specific nature of disputes concerning MSMEs, is a specific law and being a specific law would prevail over Arbitration and Conciliation Act, 1996. Background Facts The Petitioner had engaged the Respondent for providing certain IT services in a project awarded to the...
Delhi High Court Quashes ₹2000 Crore Tax Reassessment Notice Against Maruti Suzuki For Alleged Escapement Of Income In AY 2009-10
The Delhi High Court has quashed the reassessment action initiated by the Income Tax Department against car manufacturer Maruti Suzuki India Ltd for alleged escapement of income in the Assessment Year 2009-10.A division bench of Justices Yashwant Varma and Ravinder Dudeja observed that the company had made full and true disclosure of all facts in the course of the assessment and the Department did not have jurisdiction to reopen the assessment under Sections 147/148 of the Income Tax Act,...
S.197 IT Act | AO Must Form Prima Facie Opinion Regarding Taxability In India Before Rejecting Assessee's Application For Nil TDS: Delhi HC
The Delhi High Court has made it clear that before rejecting an assessee's application under Section 197 of the Income Tax Act 1961 for nil TDS or deduction of tax at a lower rate, the assessing officer must form a prima facie opinion regarding the assessee's taxability in India.Section 197(1) of the Act enables an assessee to make an application for a certificate requiring the deduction of tax at a lower rate or no deduction at all if the Assessing Officer is satisfied that the total income of...
Delhi HC Grants Relief To Foreigner Whose Rolex Watch Was Seized By Customs, Says Waiver Of Show Cause & Hearing In 'Standard Form' Not Lawful
The Delhi High Court has reiterated that authorities making a traveller waive show cause notice before confiscation of goods, etc. under Section 124 of the Customs Act 1962, on a mere proforma, is not lawful.A division bench of Justices Prathiba M. Singh and Dharmesh Sharma thus granted relief to a permanent resident of Hong Kong, whose Rolex wristwatch valued at ₹30,29,400/- was confiscated by the Customs Department at the airport.It observed, “This is another case where the Department is...
Delhi High Court Dismisses Challenge Against Arbitral Award Rejecting Counterclaim For Failure To Raise Timely Objections On Quality Of Goods
The Delhi High Court bench of Justice Manoj Kumar Ohri has upheld an Arbitral award stating that objections regarding the quality of goods must be raised within a reasonable time as per section 42 of the Sale of Goods Act, 1930. The court concurred with the decision of the Arbitral Tribunal that since the Petitioner failed to dispute the quality of supplies within a reasonable time, its counterclaims were rightly dismissed. Brief Facts: Unison Hotels Pvt. Ltd. (Petitioner) ...
Central Govt Employee Cannot Change Destination Midway While Claiming Leave Travel Concession: Delhi High Court
The Delhi High Court has made it clear that in terms of the Central Civil Services (Leave Travel Concession) Rules, 1988 an employee cannot change travel destination midway through the journey and if due to some unavoidable circumstance it has been changed, the same has to be a destination which is en route.In the case at hand, LTC was originally sought for travel to Trivandrum, which was subsequently changed to Goa, via Mumbai. However, the petitioner decided midway to change his destination to...
Delhi High Court Has Jurisdiction To Hear ANI's Copyright Infringement Suit Against OpenAI: Amicus Curiae
Amicus curiae Dr. Arul George Scaria on Friday told the Delhi High Court that it has the jurisdiction to hear the copyright infringement suit filed by Asian News International (ANI) against OpenAI Inc, which founded ChatGPT.Scaria is a Professor of Law at National Law School of India University. He submitted before Justice Amit Bansal that the Delhi High Court has the jurisdiction in the case primarily because ANI is based in Delhi and ChatGPT is used and accessed in India. He further said that...